Monaco Coach Corp (910619) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 29, 2007

Exhibit 99.1

FOR IMMEDIATE RELEASE:  February 6, 2008

Monaco Coach Corporation Reports Fourth Quarter and

2007 Fiscal Year-End Profits

COBURG, OREGON—February 6, 2008—Monaco Coach Corporation (NYSE: MNC), one of the nation’s leading manufacturers of recreational vehicles, today announced results for the fourth quarter and fiscal year ended December 29, 2007.

Revenues for the fourth quarter of 2007 were $292.1 million, or 2.4% lower than the $299.2 million in revenues for the fourth quarter of 2006. Gross profit for the period was $32.1 million, up 18.6% from $27.1 million a year ago. The Company reported operating income of $4.5 million for the quarter compared to an operating loss of $512 thousand for the fourth quarter of 2006. The Company reported net income of $2.7 million, reversing a net loss of $562 thousand for the fourth quarter of 2006. Earnings were $0.09 per diluted share for the fourth quarter of 2007 versus a loss of $0.02 per diluted share for the fourth quarter of 2006.

For the fiscal year ended December 29, 2007, Monaco Coach reported revenues of $1.3 billion, level with fiscal year 2006 revenues. Gross profit for the year was $140.9 million, up 13.1% compared to $124.5 million for 2006. Operating income for the year was $23.4 million, compared to $3.8 million for 2006. Net income for 2007 was $12.3 million, compared to $1.0 million earned in 2006. Earnings per share for the fiscal year were $0.41 per diluted share compared to $0.03 per diluted share for 2006.

Kay Toolson, Chairman and Chief Executive Officer of Monaco Coach Corporation, stated, “We are very pleased with our 2007 results. The steps we have taken over the last 18 months to make the Company more efficient have significantly increased our profitability. We are committed to maintaining production levels that will produce optimal inventory levels for our dealer partners and the Company.”

“Our Motorized RV Segment continues its strong momentum both in the marketplace and profitability. Our diesel Class A market share improved by over 10% through November, and our gasoline market share is also beginning to improve. We feel the Fed’s recent interest rate cuts should help the RV market in the second half of 2008. We believe that while some RV buyers may delay their purchasing decisions when times are uncertain, they rarely leave the RV lifestyle and can be expected to return to purchase a new RV when their confidence is restored,” said Toolson.